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E12-7 The following are comparative balance sheets for Mitch Company. Mitch Company Comparative Balance Sheets December 31 Assets 2017 2016 Cash $68,000 $22,000 Accounts Receivable

E12-7 The following are comparative balance sheets for Mitch Company.

Mitch Company Comparative Balance Sheets December 31

Assets 2017 2016

Cash $68,000 $22,000

Accounts Receivable $88,000 $76,000

Inventory $167,000 $189,000

Land $80,000 $100,000

Equipment $260,000 $200,000

Accumulated Depreciation of Equipment ($66,000) ($32,000)

Total $597,000 $555,000

Liability of Stockholders Equity

Accounts Payable $39,000 $43,000

Bonds Payable $150,000 $200,000

Common Stock ($1par) $216,000 $174,000

Retained Earnings $192,000 $138,000

Total $597,000 $555,000

Additional information:

Net income for 2017 was $93,000.

Depreciation expense was $34,000.

Cash dividends of $39,000 were declared and paid.

Bonds payable amounting to $50,000 were redeemed for cash $50,000.

Common stock was issued for $42,000 cash.

No equipment was sold during 2017.

Land was sold for its book value.

Instructions

Prepare a statement of cash flows for 2017 using the indirect method.

Identify phases of product life cycle.

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